Express to close 100 stores by 2022, narrows Q4 forecast

Announcing Expressway Forward corporate strategy to drive profitable growth, Express inc has said that the company expects to close approximately 100 stores by 2022 including nine stores that have already closed in 2019, 31 by the end of January 2020, and an additional 35 by the end of January 2021. The company added that comparable sales are currently expected to be approximately down 3 percent, adjusted net income to be in the range of 11 to 12.5 million dollars and adjusted diluted earnings per share to be in the range of 17 cents to 19 cents.

Commenting on the steps being taken by the company, Tim Baxter, Chief Executive Officer of Express said in a statement: “Today we are unveiling our new corporate strategy, called The Expressway Forward, and we are focused on profitable growth. My expectation is that we will return to a mid-single-digit operating margin through a combination of low-single-digit comp sales growth, margin expansion and cost reductions. This will of course take some time, but we have a clear path.”

Express updates on new corporate strategy

The company further said that Expressway Forward outlines key initiatives based on the company’s four foundational pillars of product, brand, customer and execution, as represented by the company’s ticker symbol, EXPR. The company will drive customer retention and acquisition through a combination of relaunching its loyalty program and private label credit card in fall 2020, optimizing marketing spend through new tools and predictive models, and more personalized customer communications.

The company said, several new initiatives will create operational efficiency across the organization, including a new go-to-market process, inventory optimization, an improved customer experience, enhanced omni-channel capabilities, fleet rationalization, and cost reductions. Additionally, the company’s new product approach – “The Express Edit” – will result in a curated assortment reflecting versatility and consistent newness.

The company expects to have approximately 200 million dollars in cash on hand by the end of fiscal 2019.

Picture:Express store via Businesswire